Pinterest announced it is slashing its workforce by nearly 15% as the social media company pivots resources toward artificial intelligence, the latest tech giant to change its operations around AI capabilities while reducing headcount and triggering concerns about massive job displacement.
Pinterest said it is “reallocating resources to AI-focused roles and teams that drive AI adoption and execution,” “prioritizing AI-powered products and capabilities,” and “accelerating the transformation of its sales and go-to-market approach.”
The company is the latest firm to realign its workforce around AI, amid ongoing uncertainty over the technology’s long-term impact on employment.
The restructuring is expected to be completed by the end of its third fiscal quarter, subject to local law and consultation requirements.
The move will trigger restructuring charges between $35 million and $45 million, primarily in cash-related expenditures.
Despite reducing overall staffing, the company plans to reinvest in "key development areas and strategic opportunities," according to the filing.
AI displacement warnings mountThe announcement arrives amid mounting warnings from AI industry leaders about rapid workforce displacement.
"We might be six to twelve months away from when the model is doing most, maybe all, of what [software engineers] do end to end," he said.
"Where the internet gave people worldwide reach, AI gives them a world-class staff," Tenev said.
Tech restructuring“Even if we’re not heading for an imminent AI job apocalypse,” Gownder added, organizations’ use of AI will alter work and customer service, but “in the next five years, the future of work will remain largely human,” as AI takes over tasks without fully replacing jobs.
